Galloway and Collens, PLLC

Trusted legal representation
throughout Michigan

248-397-5507 | 888-349-0309

Existing clients call 248-545-2500

Main Navigation

Oakland County Probate & Estate Administration Law Blog

Estate plan of The Velvet Underground's Lou Reed made public

Whenever a celebrity dies, the news is typically flooded with every last detail of their demise. Then, details about the value of their estate may be made public also. One way to avoid having these details made public is for celebrities or others who have a high value estate to have a trust created rather than a will. Anyone in Michigan who is concerned about their estate plan may want to learn more about the difference between a trust and will and why some think Lou Reed handled this issue wrong.

Lou Reed’s estate is estimated to be worth $30 million. A will that has been processed through probate states that the singer left his wife 75 percent of the estate. He left the remaining 25 percent to his sister. He also left a cash amount to his sister for the sole purpose of providing care for their elderly mother.

Michigan families may find inheritance less than expected

The entire estate-planning process can be tricky for families to navigate. It may be challenging for an elderly family member or spouse to disclose assets and financial information to the people to whom they may be closest. However, the more transparency there is when it comes to an inheritance and estate planning, the better Michigan families may be prepared to deal with estate planning and estate administration.

One area that may be difficult and require openness is the location of funds. Offshore or secret foreign accounts can spell trouble for those unfamiliar with the process. A significant chunk of the money may also be needed to pay penalties and fees for accessing the money. The more a family knows about these types of accounts, the better prepared they may be to distribute assets among family members.

Drawing up a will could alleviate future stress in Michigan

Broaching the topic of estate planning can be somewhat uncomfortable for many people. However, it is better to have these plans in place long before they are needed in order to ensure that end-of-life decisions are handled accordingly. Estate planning covers various subjects from creating a will to appointing a power of attorney, and these decisions should not be made hastily.

Some Michigan residents may avoid thinking about making these plans because they fear that the process will be long and complicated. Luckily, drawing up the proper documents can be less stressful if an individual has information on how to do so. Certain circumstances such as multiple marriages and the number of children could potentially lead to more difficult decisions, but understanding the importance of these plans could help parties appoint the right individuals.

Michigan residents should not put off drafting an estate plan

Many people wrongfully assume that they do not need to think about such things as estate planning if they are just starting out or do not have a great deal of valuable assets. Yet, anyone in Michigan who has children would be wise to make estate planning a priority. Also, residents should seriously consider how the size of their estate or number of owned properties can factor into an estate plan.

One couple was recently shocked when their older parents insisted they take the time to begin the estate planning process. They were going on a cruise and planned to leave their young child in the care of the grandparents. The grandparents rightfully made it clear that they needed legal documentation to ensure the fate of the child if something were to happen to them on the cruise. This incident highlights that anyone with children should have an estate plan in place, regardless of their age.

Michigan families need estate plan for digital assets

Estate plans essentially outline the fate of one's personal belongings and other assets, such as bank accounts and investments. As technology continues to grow by leaps and bounds, it is becoming more important to think outside of the box when it comes to estate planning. Simply put, it is about much more than who gets the fine china and the house. An estate plan for Michigan residents may now need to include digital assets.

Digital assets can include anything from email accounts, pictures stored in a cloud and online banking information. More than half of all Americans now engage in some kind of online banking. This means there may not be a traditional checkbook or bank statements in the mail to help beneficiaries connect the dots about finances.

In Michigan, an estate plan can be about more than family

Traditionally, estate planning has been the process of handing down belongings and other assets from one generation to the next. The process of creating an estate plan is highly personal. That is reflected in some recent changes to the process in general, such as for those who do not have children or who are seeking a more creative approach. Michigan residents and others around the country are taking a different approach as family dynamics continue to evolve.

More families and individuals are choosing to not have children. As a result, childless couples or single individuals are taking a more charitable approach to leaving their assets behind in a will. Charitable giving is an approach that is gaining in popularity for those without children.

Include the right kind of power of attorney in your estate plan

There are many decisions to make when it comes to estate planning. Many may think a will is all that is needed. However, there are other documents and protections that may be needed to complete the estate plan of a Michigan resident.

One essential document is a durable power of attorney. This gives someone the power to make financial decisions on the behalf of someone who is unable to do so. Some may assume that they should give this authority to someone who is closest to them personally. However, if that person is not good at handling money, that could be a mistake. There should be a back-up person named, too, just in case the first person would become incapacitated or mentally unable to handle financial decisions.

Important factors for an estate plan in Michigan

The general topic of estate planning may be difficult for some to bring up or think much about. However, anyone who has any kind of assets may benefit from learning more about the process and what it entails, especially the important decisions that must be made. Anyone in Michigan who has not begun the process of putting together an estate plan may want to consider some of the following factors.

It is vital to understand the role of an executor when choosing one. An executor will have a tremendous amount of duties and it is best to prepare the person chosen ahead of time. The executor will have to handle paying debts of the estate, dealing with tax issues and also the actual distribution of assets left to beneficiaries.

Michigan residents may want to include pets in estate plan

When people sit down to decide what will become of their assets, they may think about bank accounts, homes, collectibles or even the fate of a family business. Many people already know that formulating a comprehensive estate plan is vital if there are kids involved. However, people in Michigan may not think ahead about what may become of their pets if something happens.

The fate of family pets is important because they are living creatures who need immediate attention and care. Unlike a car or home, a pet can't wait in limbo for months while decisions are held up in probate. Because of this fact, it is recommended that pet owners draft an immediate plan and even set aside funds to help secure the fate of beloved animals.

Reasons Michigan residents should prepare a will

People tend to put off anything related to estate planning, as it isn't a subject many younger people like to think about. Anyone in Michigan over the age of 18, especially anyone with children, may benefit by preparing and executing a will. Those over 18 may also gain by looking into other vital documents that are better to have and not need rather than not have and need.

When there are children involved, a will is a concrete and vital tool in making sure wishes are adhered to. Even if a couple or parent has an informal agreement about what family members may raise an orphaned minor, having it legally outlined is a must. Without a legal document in these circumstances, surviving family members could find themselves fighting over custody.

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.

248-397-5507 | 888-349-0309